Research examining 789 “Shark Tank” pitches reveals that entrepreneurs who display confidence while remaining open to investor challenges secure more deals. However, when self-assuredness gives way to arrogance or defensiveness, investors are likely to walk away.
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Analysis and Opinions
I analyzed 789 ‘Shark Tank’ pitches. This personality trait gets funding
Photo by Fast Company
Key Takeaways:
- There are two distinct “flavors” of narcissism—admiration and rivalry—with differing effects on investor decisions.
- Entrepreneurs exhibiting “narcissistic admiration” stand a greater chance of securing funding.
- Social cues, such as openness and composure, strongly influence an investor’s impressions.
- Hostile or defensive behavior, even with solid business plans, can deter funding.
- These findings may apply to various high-stakes pitch scenarios beyond “Shark Tank.”
Why Some Founders Secure Deals
Research based on 12 seasons of “Shark Tank” highlights a vital link between an entrepreneur’s interpersonal style and the funding they secure. According to professional psychologists who analyzed 789 pitches, founders who project what researchers call “narcissistic admiration” appear more confident, compelling, and open—traits that convince investors to buy into their vision.
Two Sides of Narcissism
Narcissistic admiration is characterized by wanting others to think highly of you and being eager to impress them. Narcissistic rivalry, on the other hand, can manifest as defensiveness and a tendency to put others down in order to feel superior. In the context of a high-stakes setting like “Shark Tank,” where even prototypes might be pitched, these two facets of personality can sway investor sentiments dramatically.
What the Data Reveals
Researchers scored each founder-CEO’s behavior using a validated psychometric scale and measured the emotional tone of investor reactions—whether responses were positive or negative. They found that entrepreneurs who excelled in narcissistic admiration often developed a more positive rapport with investors, securing them better funding opportunities. In contrast, those who displayed narcissistic rivalry risked coming off as arrogant, repelling the very investors they were trying to win over.
Investor Impressions Matter
The “sharks” on the show have only a short window to assess a founder’s potential, and their judgment goes beyond financial projections. They look closely at how the entrepreneur handles scrutiny. Seeming self-possessed and enthusiastic can earn trust, but reacting defensively or aggressively—even if the idea is solid—often kills a deal.
Implications Beyond Reality TV
While “Shark Tank” makes for engaging television, the underlying lessons echo in real-world boardrooms and venture capital offices. Short, high-pressure presentations—like accelerator demo days—can boil down to interpersonal exchanges as much as fiscal logic. A balance of bold vision and composure helps entrepreneurs snap up financing in these make-or-break moments.
What Comes Next
The study’s authors plan to explore whether the same patterns hold in private settings without TV cameras, or if certain investor profiles might reward a more combative style. Their findings may prove especially relevant for individuals or teams preparing to pitch new ideas, underscoring the importance of cultivating approachable confidence rather than resorting to hostility.
